(NZ) Limited
The notice of exemption concerns an application
received by the Commerce Commission (Commission) on 2 December 2003 made by Westfield (NZ) Trust Limited on behalf of the Westfield Group of companies.
The Westfield Group includes those companies shown in the Commission Decision 536 in Appendix 1.
The Westfield Group seeks in the application, under section 81 of the Electricity Industry Reform Act 1998
(EIR Act), an exemption from the EIR Act.
The Commission, pursuant to section 81 of the Electricity Industry Reform Act 1998 (EIR Act), exempts the following entities (the Westfield Group) from the application of section 17 of the EIR Act in respect of their current "cross-involvement" (as that term is defined in the EIR Act):
? Chartwell Shopping Centre Limited;
? Downtown Shopping Centre Limited;
? Glenfield Mall Limited;
? Manukau City Centre Limited;
? The Pakuranga Plaza Limited;
? Queensgate Centre Limited;
? Riccarton Shopping Centre (1997) Limited;
? Shore City Centre (1993) Limited;
? St Lukes Square (1993) Limited;
? WestCity Shopping Centre Limited;
? Albany Shopping Centre Limited and Albany Shopping Centre No. 2 Limited;
? St Lukes Group No. 2 Limited;
? St Lukes Group Limited;
? St Lukes Group Holdings Limited;
? Westfield Trust (NZ) Limited;
? Westfield (New Zealand) Limited;
? Abyssinian Holdings Limited; and
? Westfield Alliances (NZ) Pty Limited.
The Commission, pursuant to section 81 of the EIR Act, also exempts persons who, from time to time, acquire more than 10% of the securities in the Westfield Group from the application of section 17 of the EIR Act in respect of their "cross-involvement" (as that term is defined in the EIR Act).
The above exemption is given to the Westfield Group and persons who acquire more than 10% of the securities in the Westfield Group subject to the following terms and conditions:
(a) The Westfield Group will not charge tenants
(or anyone else) for the use of the internal embedded wiring systems, points of connection
to external distribution/transmission lines and metering equipment within its shopping centres.
(b) The Westfield Group will allow access to the internal embedded wiring systems, points of connection to external distribution/transmission lines and metering equipment within its shopping centres on reasonable terms and within a reasonable time to any electricity supply business to enable that electricity supply business to supply electricity to any tenant of the Westfield Group connected to such systems.
(c) The Westfield Group will not enforce any of its existing lease clauses which allow it to require tenants to obtain electricity from or through the Westfield Group in order that any tenant can obtain electricity from or through any alternative electricity supplier it so chooses.
(d) The Westfield Group will:
? notify, within three months, those tenants who have lease clauses which allow the Westfield Group the option of supplying electricity to them that the Westfield Group will not enforce these clauses; and
? notify any new tenants, after the date of this exemption, who have lease clauses which allow the Westfield Group the option of supplying electricity that the Westfield Group will not enforce these clauses or alternatively that the Westfield Group will provide in the leases for those tenants that they can choose their own electricity supplier.
(e) The Westfield Group will provide, with each bill, consumption and billing information to its tenants to whom they supply electricity and will use
their best endeavours to provide such reasonable information that any tenant being supplied electricity by the Westfield Group may request,
to enable tenants to assess competitive options available to them for the supply of electricity.
(f) The Westfield Group will provide, with each bill, consumption and billing information to tenants in
a manner that separates and identifies the relevant energy charges, any recovery on account of actual line charges and the basis for such recovery, and any recovery on account of actual administration costs associated with lines charges and the basis for such recovery.
(g) In the event of the Westfield Group exiting or
re-entering the electricity supply business the Westfield Group will give the Commission written notice of that fact.
(h) The Westfield Group will not recover any revenue, margin or other amount in respect of line function or other services provided by external network operators other than an apportionment of their actual cost to the Westfield Group where and to
the extent an amount on account of that cost is recoverable from a tenant under its lease as an operational cost and actual costs of administration related to line charges to the extent recoverable under the lease.
In addition, the Commission, pursuant to section 81 of the EIR Act, exempts from the application of sections 17, 18
and 30 of the EIR Act any business or involvement or interest in relation only to any future property investment and management activities that the Westfield Group might undertake, and in respect of which sections 17, 18 and/or 30 would apply.
The exemption to any business or involvement or interest in respect of any future property investment and management activities that the Westfield Group might undertake is given subject to the following terms and conditions being fully observed by the business or involvement or interest to which the exemption applies:
(a) The terms and conditions as set out above in relation to the exemption given to the Westfield Group.
(b) That the Westfield Group informs the Commission of the details of any future property investment and/or management activity (including company purchase or formation), within 20 working days
(as that term is defined in the Commerce Act 1986) from the day following the day it undertakes the activity, that is likely to breach the EIR Act and
for which the Westfield Group and/or any other persons are likely to rely on this exemption.
The exemption takes effect from 14 November 2004.
The Commission may vary or revoke this exemption at any time in accordance with section 81 (5) of the EIR Act.